Marshalls to secure £90m additional funding; board takes 20% pay cut

Landscape products company Marshalls said on Tuesday that it is set to secure £90m in additional funds from its banking partners and that its board will take a 20% pay cut as it looks to weather the coronavirus outbreak.

Marshalls said its banking partners, NatWest, Lloyds and HSBC, have all confirmed their "full support" for an additional £30m, 12-month committed revolving credit facility to be provided.

"The discussions held have been positive and, subject to the finalisation of documentation, are now well advanced," it said, adding that the documentation process is expected to complete by the end of the month. These additional facilities comprise £90m in total and "will strengthen the group's headroom as we continue to manage the current situation", it said.

Including these additional facilities, Marshalls will have total bank facilities of £255m, of which £230m will be committed.

In addition, the company said that its board has unanimously agreed to take an immediate 20% reduction in pay for the duration of the crisis.

Marshalls said it is "closely monitoring" cash flows to ensure the business is in a strong position for eventual recovery. Discretionary expenditure is being "controlled" and non-essential capital expenditure has been deferred, it said. It is also making use of the government scheme allowing the deferral of tax payments that would normally have been payable in the period to 30 June.